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Latin America Investment News on Viva Tropical

Panama: Why Hotel Owners Hate Apartment Owners

Article Summary:

Panamanian hotel owners are complaining of unfair competition from apartment owners who rent their properties for tourism at low prices, saying they are illegally working as hotels.

Photo Credit: Prensa Panama

Original Article Text From Prensa Panama via Google Translate :

Battle Against Illegal Rentals

At a time when the hotel supply grows faster than demand boom has also taken the business of renting apartments for tourism.

Those behind the business are property owners once thought to sell their apartments for twice their original price, but finding no owner opted to rent them to tourists who will be visiting for a short time.

Hoteliers complain of unfair competition because apartment owners do not pay tourist tax and work illegally.

In Act 481 of 2012 prohibits the tourist apartment rentals for less than 45 days, and those who engage in the absence can be fined $ 5,000 initially, but the amount can be up to $ 50,000 if they are repeat.

On the Internet you can find hosting deals for less than $ 80 per day, in exclusive areas of the city such as San Francisco, Paitilla and Punta Pacifica, while city hotels offer rates ranging from 99-130 dollars on average.

The management of tourism investment Tourism Authority of Panama (ATP) has sanctioned this year to 20 companies offering online short stay apartment.

Ernesto Orillac, Deputy Administrator of the ATP, said “there is a security issue. The people who rent these apartments pay cash and it is unknown what their movements in the country. ” He said that hire more inspectors to intensify operational, due to the impact of this activity on the hotel sector.

Link to Original Article:

From Prensa Panama

Latin America Investment News on Viva Tropical